Friday, December 16, 2005

The Towers land a 230-room InterContinental

Wow...I had a feeling it was going to be a good hotel, but this one beats my expectaions. From those unfamiliar with InterContinental, they are also in SF at the Mark Hopkins in Nob Hill. That is one of the best hotels I have ever stayed in.

The spa that is mentioned in the article is a swanky place from El Dorado Hills, The Spa at La Borgata. www.spalaborgata.com

This is definatly a HUGE check mark on the financing check list for banks. I also have to imagine this boads well for some higher end retail that probably woulnd't mind sharing the same building as an InterContinental and some 800 high end condos.

Between the two sales events Saca has held, he currently has 10K deposits from 450 people. Which basically mean everyone who was invited to the sales events put a deposit down for one.

That's over 50% of the building. 50% is usually the magical mark on these condo projects in banks minds. Developers are required to hold a certain amount off the market until construction gets further along to account for any increase in costs in construction.

As long as he gets the non-refundable ones in a couple of months, I have to imagine that financing will be much easier for him.

The Towers on Capitol Mall has lined up its luxury hotel -- a 230-room InterContinental.

The deluxe British chain will open the hotel on the lowest 18 floors of the first of the two 53-floor towers that developer John Saca plans to build at 301 Capitol Mall in downtown Sacramento.

The hotel would be the second InterContinental in California -- the other is on Nob Hill in San Francisco -- and the 14th in the United States. There are 130 overall, in 60 countries.

Saca and InterContinental have finalized a contract to bring the hotel to Sacramento, Saca said Friday in a press release. The deal shows, he said, that Sacramento is ready for the chain's "impeccable services and amenities."

The InterContinental is the most luxurious brand in a reservation network that includes Crown Plaza, Holiday Inn, Staybridge Suites and Candlewood Suites. People who live in The Towers will have access to the hotel's services, including concierge, maid service and valet.

As of late November, Saca's company had accepted refundable $10,000 deposits on 450 of the approximately 800 condominiums planned for The Towers. This month, the owner of a plush El Dorado Hills spa has been making plans to buy space in the high-rise for what would become the area's largest luxury spa.

Saca also plans to add a fitness center, stores and restaurants to his project, and has intended all along to add a hotel. But he didn't say which one until today.

Crew recently demolished the former building of the Sacramento Union newspaper to prepare for The Towers' construction. Saca expects to start building the condos in January.